A general government department donates a capital asset with an original cost of $50,000 to an Enterprise Fund. The net book value as of the date of donation is $17,500. The entry that should be recorded by the Enterprise Fund would be

Question

Quizplus · Accepted Answer

The Enterprise Fund should record the capital asset at its original cost of $50,000, with accumulated depreciation of $32,500, resulting in a net book value of $17,500, which is credited as a capital contribution.

A General Government Department Donates a Capital Asset with an Original